Daily Pivots: (S1) 1.3648; (P) 1.3667; (R1) 1.3698; More….
USD/CAD lost some upside momentum as seen in 4 hour MACD. But with 1.3529 minor support intact, further rise is still expected. Current rally is part of the larger rise from 1.2460 and should target next medium term fibonacci level at 1.3838 ahead. Meanwhile, break of 1.3529 will indicate short term topping and bring lengthier consolidation.
In the bigger picture, price actions from 1.4689 medium term top are seen as a correction pattern. The first leg has completed at 1.2460. The second leg from 1.2460 is likely still in progress and could target 61.8% retracement of 1.4689 to 1.2460 at 1.3838. We’d look for reversal signal there to start the third leg. However, break of 1.3222 support will argue that the third leg has already started and should at least bring a retest of 1.2460 low. Meanwhile, sustained trading above 1.3838 would pave the way to retest 1.4689 high.
